I am stealing this post directly from the HE forums. If you or anyone you know have experienced this problem - which is actually very serious - people are being forced into debt and poverty through no fault of their own, but through the HMRC's failings, please do comment on the thread on the forums.
"Has anyone been denied child tax credits for young people 16+ remaining in full time home-based education?
We are hearing some alarming stories of families receiving demands for alleged over payments, despite having clearly indicated their child(ren)'s continuing home educated status on renewal applications.
The eligibility criteria should not exclude home educated children over 16, who are by definition still in full time education, but the child tax credit office is either unable or unwilling to provide a detailed explanation for the exclusion policy they are evidently now implementing to the detriment of home educating families.
If the regulations have been changed to allow such discrimination, HE families are being penalised retrospectively for errors on the part of CTC staff.
Hopefully this is something that Graham Stuart may be able to raise with the Minister as a matter of urgency, but anyone who has been affected by this issue might want to ask their local MP to investigate the matter on their behalf.
Clarity and consistency from public servants should surely not be too much to expect."